Incorporation is the legal procedure followed before a business entity can start its functions as a company. During this stage, a lot of time, paperwork, and efforts are involved and without proper care, many aspects can go wrong, giving the corporate entity a rocky start. Seeking professional assistance for company formation in India takes the guesswork out of complex business incorporation paperwork by completing and submitting necessary documents to the appropriate government agencies.

Hiring a leading business formation service provider to help you legally form your company has several benefits. It can make your company planning simpler as well as help you build your venture with professional support and augmented technology.

Check out the kinds of business structures you can choose from and the various ways in which you can use company formation services for setting up a new business.

Types Of Business Entities & Ways You Can Use Professional Services For Company Formation In India

1.      Sole Proprietorship

One of the most common types of company setup, sole proprietorship provides complete managerial control to one person. Even though such corporate entities to set up, it is always advisable to assign them to an external service provider if you already have your hands full with other job responsibilities. Getting professional assistance for the formation of a sole proprietorship can ensure the following points are taken care of:

1. ·         Getting an understanding of the many liabilities involved since it is the owner who has to face backlash in any difficult circumstances.
2. ·         Your entire income will be counted as profit and is liable for taxation. Understanding the Indian taxation laws and how to use them for removing the hurdles to your growth is imperative. In such situations, consulting an external advisor thus comes handy.
3. ·         Using business incorporation services can help you handle all the debts and liabilities as well as take care of your business operating licenses and paperwork.

2.      Partnership

A partnership company is managed by two or more partners who have similar interests. Right from writing a business plan to ensuring all the necessary paperwork is done and setting up tax liabilities, you can pass on the company formation process to the external service provider. 

While sealing the partnership agreement, a team with in-depth knowledge of company formation in India can ensure that the following points are taken care of:

• ·         Partnership formation – everything related to their physical location and financial information.
• ·         Dividing the percentage of profits according to the work expected of each partner to ensure the possibilities of disputes arising, later on, is minimal.
• ·         Putting on paper how a dispute should be dealt with, thus ensuring that there is no room for mudslinging in crucial situations.
• ·         Deciding on what the exit strategy should be. This way, if one individual decides to leave the business, the process will be simple and won’t be any burden to the other partners.

3.      Limited Liability Company

Also known as an LLC, a limited liability company lets the owners be able to make the most of the partnership and corporation formats. Both the profits and losses pass on to the founders without any taxation of the business itself. Hence, it is also one of the ideal business incorporation processes for small-time starters to pick up. Listed below are the aspects that should be taken care of while starting an LLC:

• ·         Forming an LLC is lesser time-consuming than the different kinds of business formation. However, the key lies in having the operating agreement prepared without any hassles. It is important to find out the capital contributions from every partner and how the profits and losses will be divided.
• ·         Seeking assistance from experts who specialise in company formation in India can help you figure out from where and how much investment can be arranged. This would help ensure that you aren’t left in a lurch over the lack of finances.

Conclusion:

If the basics of business incorporation are chalked out clearly, it determines your future trajectory of growth coupled with how your taxes, liabilities, and other key parameters would shape up. Even though entrepreneurs can handle lots of business setup processes on their own, seeking company formation services can be really helpful in the long run.

Author’s Bio:

The author is a skilled financial professional with profound knowledge of business formation and extensive experience in conducting a company audit in India. You can go through some of his other write-ups during leisure to learn more about engaging expert services for a company.